Thursday, October 24, 2019

GOLD

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Fundamental Highlights

The XAU/USD pair gained traction on Wednesday and rose toward the upper-limit of its two-week-old range near the critical $1500 handle supported by risk-off flows. Resurfacing fears of the United Kingdom crashing out of the European Union without a deal after British Prime Minister Boris Johnson's timetable to finalize his proposed deal got rejected by lawmakers allows traditional safe-havens to find demand during yesterday's session. Nevertheless, investors seem to be taking a cautious stance while waiting for the EU to make a decision on a possible Brexit extension to January rather than fleeing to safety as seen by modest gains posted in global equity indexes.

Technical Analysis

Gold prices are still trading in the same range since last week as bulls still trying to seek for a run towards the $1500 handle as the price surged to challenge the critical $1494.87 resistance level. The price is currently trading just above the $1490 level as the momentum broke to the upside as we can see on the RSI chart. We will be focusing on the upside if the price breaks above the $1494.87 resistance level with the upper band and then the $1506.02 resistance level on our watch.

Support: 1486.98/ 1474.99
Resistance: 1494.87/ 1506.02

Chart (H4)
XAUUSD